By Lisa Kerner
Charlotte, N.C., May 29 - Windstream Corp. entered into a definitive agreement to acquire all of the outstanding shares of CT Communications, Inc. for $31.50 per share in cash in a transaction valued at about $585 million, including the assumption of debt.
The transaction is expected to close in the second half of 2007. Windstream plans to finance the acquisition with debt and existing cash, according to a company news release.
Windstream expects to realize free cash flow improvements through expected annual cost synergies of some $30 million. In addition, the company expects to have 3.4 million access lines and 744,000 broadband customers, on a pro forma basis, following the transaction's close.
CT Communications was advised by Raymond James & Associates, Inc. and Moore & Van Allen, PLLC. The Concord, N.C.-based company provides integrated telecommunications and related services to residential and business customers.
Windstream, a Little Rock, Ark., broadband and entertainment services company, was advised by Stephens Inc. and Kutak Rock, LLP.
| Acquirer: | Windstream Corp.
|
| Target: | CT Communications, Inc.
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| Transaction value: | $585 million
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| Price per share: | $31.50
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| Announcement date: | May 29
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| Expected closing: | Second half of 2007
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| Stock price for target: | Nasdaq: CTCI: $21.58 on May 25
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